Correlation Between Victory Special and Usaa Nasdaq

Can any of the company-specific risk be diversified away by investing in both Victory Special and Usaa Nasdaq at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Victory Special and Usaa Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Victory Special Value and Usaa Nasdaq 100, you can compare the effects of market volatilities on Victory Special and Usaa Nasdaq and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Victory Special with a short position of Usaa Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Special and Usaa Nasdaq.

Diversification Opportunities for Victory Special and Usaa Nasdaq

-0.6

Correlation Coefficient

Victory Special  Usaa Nasdaq

Excellent diversification

The 3 months correlation between Victory and Usaa is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Victory Special Value and Usaa Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usaa Nasdaq 100 and Victory Special is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Victory Special Value are associated (or correlated) with Usaa Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usaa Nasdaq 100 has no effect on the direction of Victory Special i.e., Victory Special and Usaa Nasdaq go up and down completely randomly.

Pair Corralation between Victory Special and Usaa Nasdaq

Assuming the 90 days horizon Victory Special Value is expected to under-perform the Usaa Nasdaq. In addition to that, Victory Special is 39.01 times more volatile than Usaa Nasdaq 100. It trades about -0.5 of its total potential returns per unit of risk. Usaa Nasdaq 100 is currently generating about 0.26 per unit of volatility. If you would invest  4,878  in Usaa Nasdaq 100 on May 6, 2025 and sell it today you would earn a total of  738.00  from holding Usaa Nasdaq 100 or generate 15.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	6.45%
Values	Daily Returns

Victory Special Value  vs.  Usaa Nasdaq 100

Victory Special Value

Risk-Adjusted Performance

Very Weak

Over the last 90 days Victory Special Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Usaa Nasdaq 100

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Usaa Nasdaq 100 are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Usaa Nasdaq showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Victory Special and Usaa Nasdaq

The main advantage of trading using opposite Victory Special and Usaa Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Special position performs unexpectedly, Usaa Nasdaq can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Usaa Nasdaq will offset losses from the drop in Usaa Nasdaq's long position.

The idea behind Victory Special Value and Usaa Nasdaq 100 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.